With Family Medicine February 1st, 2010 Achieving Procurement Excellence

 Administration Excellence ◦ Mission ◦ Vision ◦ Goals  Financial & Procurement Services ◦ Financial Controls/Roles & Responsibilities ◦ Procurement Cycle ◦ Process Improvements  Faculty of Medicine and McGill MarketPlace ◦ PCards vs. MMP ◦ McGill MarketPlace

The Mission Transform the Faculty of Medicine’s administrative infrastructure into one that supports the vision and mission of the Faculty in its role of teaching, research and service to the community.

Our Vision  Develop administrators who are: ◦ Knowledgable in all aspects of administration ◦ Integral part of our Learning Collaboratives ◦ Supported by:  An Administration Excellence team at the Faculty level  A web portal specifically designed to their needs  On-going training and mentoring  To achieve efficient, cost effective administrative units

Goals Mastery in all aspects of department administration:  Student Centered Stewardship – undergrad to post-grad to doctoral to post doctoral  Human Resources – recruitment to retirement or exit  Financial Services – financial management of the Faculty, its departments, and research funds  Facilities Management – responsible management of all facilities  Stakeholder Affairs – relations with donors, alumni, students & faculty

Financial & Procurement Services  Financial Controls  Roles & Responsibilities  Procurement Cycle  Process Improvements  Financial Controls  Roles & Responsibilities  Procurement Cycle  Process Improvements

Financial controls Budget Availability Checking Roles & Responsibilities Local Approval MMP Purchase Requisition with FOAPAL Free form (non-catalog) req A Virtual Shopping Mall Integrated with Minerva/ Banner

Roles & Responsibilities clarified ShopperRequestorApprover  Search products in the on-line catalogs.  Add products to a cart.  Enter a delivery date.  Enter internal and vendor notes  The shopper will assign the cart to a requestor who will assign FOAPAL(s) and place the order.  All employees, students and casuals are automatically established as shoppers  Prepares and completes orders  Receives carts from shoppers to complete − Notification by . − Will find the cart assigned in their pending carts. − Assign FOAPAL(s)  Fund Financial Managers (FFM) are automatically deemed as Requestors  FFMs may sponsor other employees to be Requestors  Once a Requestor, they can place orders on any FOAPAL in any amount.  Best Practice: Requestor should not be Approver  Intercepts and reviews orders originated by others, to assess whether: − Meets the objectives of the fund(s) charged − Is legitimate, reasonable and an appropriate use of funds − Adheres to policies and guidelines − Complies with any restrictions imposed by external funding sources  By default, the Approver is the FFM  The FFM may name one or more delegates and establish $$ limits fund by fund. FOAPAL

Procurement Cycle Initiate request for goods/services Select vendor(s) Goods/Services Received Receive and Verify Invoice Issue Payment Place Order  Identify business requirement for purchase  Estimate cost of purchase  Ensure funding is available  Identify potential vendors  Obtain written quotation  Review terms of purchase, warranties, return policies  Depending on size and/or nature of the order, written confirmation of terms may be required.  Ensure that terms of purchase/sale are met, i.e. quantity, quality, etc.  Ensure that information on the invoice (i.e. price, quantity, quality, etc) matches the information contained in the original purchase agreement  Obtain approval to issue payment of the invoice (2) (3) (4) (5) (6) McGill MarketPlace

MMP - Communication Tool  The only point of entry for any radioactive material purchases – full integration with Hazardous Materials Management System (November 2009)  Intervention on foreign purchases to clear customs  Terms and conditions to protect you  Bill 17 – Act Respecting Contracting by Public Bodies will be respected ◦ All orders > $100K require public bid ◦ Contracted or preferred vendors  University Signing Bylaws are respected

Process Improvements  PO’s to catalog vendors ◦ <$2500 bypass Procurement Services’ approval ◦ Issued daily by Procurement Services if approved by 3:00 p.m.  Inappropriate, frozen or terminated funds not available for selection  Cost Sharing ◦ FOAPALS can be applied by line item ◦ Avoid after-the-fact manual adjustments  Create complicated annual maintenance contracts only once and copy  Audits will be directed to Accounts Payable

Seamless Integration with Finance Budget Availability Checking  MMP will verify if you have sufficient balance on the fund(s) charged to cover the order  Considers ‘pipeline’ transactions (already completed but not yet posted to FOAPALs)  If insufficient funds ◦ Requestor will receive an ‘auto disapproval’ and the order is cancelled ◦ Simply copy the original order, make changes, and resubmit  Helps you to avoid over-expenditures

Shop with this profile Create Cart Select Vendor Add Products Edit Cart Review Place Order Assigned Cart View Requisition History  Profile Data  Shipping Addresses  FOAPAL Favorites  Hosted Catalog  Punch-Out  Non-Catalog  Rename Cart  Add Internal Note  Add External Note  Edit Item Details A Shopper will assign cart to a Requestor Requestor will continue to complete the order  View Requisition Status (MMP)  View Approval History (Minerva) MMP Steps Verify, Edit and/or Create Profile  Transaction Date  Ship to Address  Delivery Date  FOAPAL information

Payment Request Form still used for non-order payments Membership dues Course registration Subscriptions Payment to Vendor Outside of Procurement Cycle Payments to individuals for living and clothing allowances Subject fees originated by the paying department. Institutional advances and transfers relating to research grants Non-Invoice Payments

 Procurement in the Faculty  PCards vs. MMP  McGill MarketPlace  Procurement in the Faculty  PCards vs. MMP  McGill MarketPlace

Goal: Best-in-Class procurement practices for the Faculty of Medicine. Let’s get it right the first time. Tool: McGill Marketplace “MMP” ◦ Web based purchasing tool to ◦ Available 24/7, worldwide

Objectives:  Provide a one-stop shop for all purchasing of goods & services requirements  Save money across the University by negotiating better pricing  Easier access to purchasing data  Improvement of processes and financial controls

 Allows for proactive management of funds and budgets  Users will not go back to PCards: ◦ Just as fast ◦ Better control over spending ◦ Significant reduction administrative tasks  When it hasn’t worked & why? ◦ Spending over budget ◦ Routines not respected ◦ Approvals not in place

 PCard - Pro ◦ You order goods with a phone call ◦ Your goods are delivered  PCard – Con ◦ After the fact reconciliation – you must approve on MOPS and add a FOAPAL; ◦ You must store original invoices in orderly fashion for 7 years – subject to after-the-fact compliance reviews; ◦ You cannot easily identify what was purchased without going back to original invoice; ◦ Card sharing – you cannot easily identify who made the purchase – vulnerability to fraud; ◦ The charges are automatically charged to your FOAPAL without approval; ◦ Significant delays for replacement cards. ◦ Vendor is paid immediately  MMP - Pro ◦ Accessible 24/7; ◦ Single access point for your purchases ◦ Secure environment for making purchases ◦ Same day order turn around time and in many cases next day delivery; ◦ You decide who can make purchases in MMP; ◦ You can approve the transactions before the order is made and charged to your FOAPAL; (reduces wrong charges, duplicate orders) ◦ Track what purchases are being made and by whom; ◦ Invoices sent directly to Accounts Payable; ◦ You cannot buy goods with insufficient funds. ◦ Vendor is not paid immediately (net 30 days)

 It is your virtual shopping mall at McGill  You can: ◦ View, compare, search for products ◦ Order products charging FOAPALs ◦ Shop from multiple online catalogs using a shopping cart ◦ Save a list of favorite products ◦ View order history  It is your virtual shopping mall at McGill  You can: ◦ View, compare, search for products ◦ Order products charging FOAPALs ◦ Shop from multiple online catalogs using a shopping cart ◦ Save a list of favorite products ◦ View order history

 Can assign FOAPAL per line item or globally  Can have zero $ line item  User shopping profiles will allow for FOAPAL favorites  Purchase Requisitions approved locally by FFM (Fund Financial Manager) or delegate  All Purchase Orders will be sent to vendor  Can assign FOAPAL per line item or globally  Can have zero $ line item  User shopping profiles will allow for FOAPAL favorites  Purchase Requisitions approved locally by FFM (Fund Financial Manager) or delegate  All Purchase Orders will be sent to vendor

 McGill Marketplace hands-on training be setup where you will learn:  How to get setup in MMP;  Know what role you have in MMP;  How to make it work efficiently for you;  How to track & expedite your orders;  How to perform approvals (if implicated);  How to manage these events and records.  McGill Marketplace hands-on training be setup where you will learn:  How to get setup in MMP;  Know what role you have in MMP;  How to make it work efficiently for you;  How to track & expedite your orders;  How to perform approvals (if implicated);  How to manage these events and records.

Local queue (one per fund) Central queue (one per group of funds) PR  PO FFM* delegate(s) Fund Administrator with possible escalation Requisition posted PO issued > $1,000 Otherwise auto- disapproved Budget Availability Checking (if applicable) FFM(s) > $10,000 Level Auto Approval 1 < $1,000 *FFM = Fund Financial Manager > $ depending on funding source Sample Threshold

myMcGill Link in Minerva

McGill Contracted Vendors (Secured site - sign in required)  MMP Tutorials  Procurement Administration Tutorials  How to Sponsor a Requestor  How to Delegate Approvals – Approvals Tutorials  McGill Contracted Vendors (Secured site - sign in required)  MMP Tutorials  Procurement Administration Tutorials  How to Sponsor a Requestor  How to Delegate Approvals – Approvals Tutorials 

Faculty of Medicine HelpDesk  MedIT– For system support ◦ (514) ◦

 Procurement Services – Purchasing policy and procedures ◦  Finance Helpdesk – Setting up Requestors, Delegating Approvals, Approving Documents ◦ (514) ◦  ICS service desk – For system support ◦ (514) ◦

 The Faculty of Medicine commits to providing you with an ongoing support system to ensure a smooth and easy transition to using McGill MarketPlace;  With your support, Family Medicine will be a recognized MMP benchmark for the Faculty of Medicine.  The Faculty of Medicine commits to providing you with an ongoing support system to ensure a smooth and easy transition to using McGill MarketPlace;  With your support, Family Medicine will be a recognized MMP benchmark for the Faculty of Medicine.